MGIC Investment Corp. reports strong quarter

Freeman Staff

Oct. 15, 2015

MILWAUKEE — MGIC Investment Corporation reported a strong financial performance in the most recent quarter with the net income increasing $52.7 million.

According to the financial report released Thursday, for the quarter ended Sept. 30, net income was $822.9 million, or $1.78 per diluted share, including $698.1 million relating to the reversal of MGIC’s deferred tax asset valuation allowance.

Excluding the impact of the deferred tax asset valuation allowance reversal, adjusted net income for the recent quarter would have been $124.7 million, or $0.29 per diluted share, compared with net income of $72 million, or $0.18 per diluted share, for the same quarter a year ago, according to MGIC.

The valuation allowance related to deferred tax assets was reversed based on the evaluation of the ability to ultimately utilize those assets.  The reversal of the valuation allowance increased book value per share by $2.23 in the third quarter.